Hungary Population: 9,825,704

Hungary became a Christian kingdom in A.D. 1000 and for many centuries served as a bulwark against Ottoman Turkish expansion in Europe. The kingdom eventually became part of the polyglot Austro-Hungarian Empire, which collapsed during World War I. The country fell under communist rule following World War II. In 1956, a revolt and an announced withdrawal from the Warsaw Pact were met with a massive military intervention by Moscow. Under the leadership of Janos KADAR in 1968, Hungary began liberalizing its economy, introducing so-called "Goulash Communism." Hungary held its first multiparty elections in 1990 and initiated a free market economy. It joined NATO in 1999 and the EU five years later.

Landlocked; strategic location astride main land routes between Western Europe and Balkan Peninsula as well as between Ukraine and Mediterranean basin; the north-south flowing Duna (Danube) and Tisza Rivers divide the country into three large regions

Location:

Central Europe, northwest of Romania

Geographic coordinates:

47 00 N, 20 00 E

Area:

total: 93,028 sq km land: 89,608 sq km water: 3,420 sq km

Size comparison: slightly smaller than Virginia; about the same size as Indiana

air and water pollution are some of Hungary's most serious environmental problems; water quality in the Hungarian part of the Danube has improved but is still plagued by pollutants from industry and large-scale agriculture; soil pollution

Hungarian 85.6%, Romani 3.2%, German 1.9%, other 2.6%, unspecified 14.1% (2011 est.) note: percentages add up to more than 100% because respondents were able to identify more than one ethnic group; Romani populations are usually underestimated in official statistics and may represent 5–10% of Hungary's population

Languages:

Hungarian (official) 99.6%, English 16%, German 11.2%, Russian 1.6%, Romanian 1.3%, French 1.2%, other 4.2% (2011 est.) note: shares sum to more than 100% because some respondents gave more than one answer on the census; Hungarian is the mother tongue of 98.9% of Hungarian speakers

conventional long form: none conventional short form: Hungary local long form: none local short form: Magyarorszag former: Kingdom of Hungary, Hungarian People's Republic, Hungarian Soviet Republic, Hungarian Republic etymology: the Byzantine Greeks refered to the tribes that arrived on the steppes of Eastern Europe in the 9th century as the "Oungroi," a name that was later Latinized to "Ungri" and which became "Hungari"; the name originally meant an "[alliance of] ten tribes"; the Hungarian name "Magyarorszag" means "Country of the Magyars"; the term may derive from the most prominent of the Hungarian tribes, the Megyer

Government type:

parliamentary republic

Capital:

name: Budapest geographic coordinates: 47 30 N, 19 05 E time difference: UTC+1 (6 hours ahead of Washington, DC, during Standard Time) daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October etymology: the Hungarian capital city was formed in 1873 from the merger of three cities on opposite banks of the Danube: Buda and Obuda (Old Buda) on the western shore and Pest on the eastern; the origins of the original names are obscure, but according to the second century A.D. geographer, Ptolemy, the settlement that would become Pest was called "Pession" in ancient times; "Buda" may derive from either a Slavic or Turkic personal name

Saint Stephen's Day, 20 August (1083); note - commemorates his canonization and the transfer of his remains to Buda (now Budapest) in 1083

Constitution:

history: previous 1949 (heavily amended in 1989 following the collapse of communism); latest approved 18 April 2011, signed 25 April 2011, effective 1 January 2012 amendments: proposed by the president of the republic, by the government, by parliamentary committee, or by Parliament members; passage requires two-thirds majority vote of Parliament members and approval by the president; amended several times, last in 2018 (2019)

Legal system:

civil legal system influenced by the German model

Suffrage:

18 years of age, 16 if married and marriage is registered in Hungary; universal

Executive branch:

chief of state: President Janos ADER (since 10 May 2012)

head of government: Prime Minister Viktor ORBAN (since 29 May 2010)

cabinet: Cabinet of Ministers proposed by the prime minister and appointed by the president elections/appointments: president indirectly elected by the National Assembly with two-thirds majority vote in first round or simple majority vote in second round for a 5-year term (eligible for a second term); election last held on 13 March 2017 (next to be held spring 2022); prime minister elected by the National Assembly on the recommendation of the president; election last held on 10 May 2018 (next to be held by spring 2022)

description: unicameral National Assembly or Orszaggyules (199 seats; 106 members directly elected in single-member constituencies by simple majority vote and 93 members directly elected in a single nationwide constituency by party list proportional representation vote; members serve 4-year terms)

highest courts: Curia or Supreme Judicial Court (consists of the president, vice president, department heads, and approximately 91 judges and is organized into civil, criminal, and administrative-labor departments; Constitutional Court (consists of 15 judges, including the court president and vice president) judge selection and term of office: Curia president elected by the National Assembly on the recommendation of the president of the republic; other Curia judges appointed by the president upon the recommendation of the National Judicial Council, a separate 15-member administrative body; judge tenure based on interim evaluations until normal retirement at age 62; Constitutional Court judges, including the president of the court, elected by the National Assembly; court vice president elected by the court itself; members serve 12-year terms with mandatory retirement at age 62

Hungary has transitioned from a centrally planned to a market-driven economy with a per capita income approximately two-thirds of the EU-28 average; however, in recent years the government has become more involved in managing the economy. Budapest has implemented unorthodox economic policies to boost household consumption and has relied on EU-funded development projects to generate growth. Following the fall of communism in 1990, Hungary experienced a drop-off in exports and financial assistance from the former Soviet Union. Hungary embarked on a series of economic reforms, including privatization of state-owned enterprises and reduction of social spending programs, to shift from a centrally planned to a market-driven economy, and to reorient its economy towards trade with the West. These efforts helped to spur growth, attract investment, and reduce Hungary’s debt burden and fiscal deficits. Despite these reforms, living conditions for the average Hungarian initially deteriorated as inflation increased and unemployment reached double digits. Conditions slowly improved over the 1990s as the reforms came to fruition and export growth accelerated. Economic policies instituted during that decade helped position Hungary to join the European Union in 2004. Hungary has not yet joined the euro-zone. Hungary suffered a historic economic contraction as a result of the global economic slowdown in 2008-09 as export demand and domestic consumption dropped, prompting it to take an IMF-EU financial assistance package. Since 2010, the government has backpedaled on many economic reforms and taken a more populist approach towards economic management. The government has favored national industries and government-linked businesses through legislation, regulation, and public procurements. In 2011 and 2014, Hungary nationalized private pension funds, which squeezed financial service providers out of the system, but also helped Hungary curb its public debt and lower its budget deficit to below 3% of GDP, as subsequent pension contributions have been channeled into the state-managed pension fund. Hungary’s public debt (at 74.5% of GDP) is still high compared to EU peers in Central Europe. Real GDP growth has been robust in the past few years due to increased EU funding, higher EU demand for Hungarian exports, and a rebound in domestic household consumption. To further boost household consumption ahead of the 2018 election, the government embarked on a six-year phased increase to minimum wages and public sector salaries, decreased taxes on foodstuffs and services, cut the personal income tax from 16% to 15%, and implemented a uniform 9% business tax for small and medium-sized enterprises and large companies. Real GDP growth slowed in 2016 due to a cyclical decrease in EU funding, but increased to 3.8% in 2017 as the government pre-financed EU funded projects ahead of the 2018 election. Systemic economic challenges include pervasive corruption, labor shortages driven by demographic declines and migration, widespread poverty in rural areas, vulnerabilities to changes in demand for exports, and a heavy reliance on Russian energy imports.

44.5% (of GDP) (2017 est.) Budget surplus (+) or deficit (-): -2% (of GDP) (2017 est.) note: Hungary has been under the EU Excessive Deficit Procedure since it joined the EU in 2004; in March 2012, the EU elevated its Excessive Deficit Procedure against Hungary and proposed freezing 30% of the country's Cohesion Funds because 2011 deficit reductions were not achieved in a sustainable manner; in June 2012, the EU lifted the freeze, recognizing that steps had been taken to reduce the deficit; the Hungarian deficit increased above 3% both in 2013 and in 2014 due to sluggish growth and the government's fiscal tightening

Public debt:

73.6% of GDP (2017 est.) 76% of GDP (2016 est.)

note: general government gross debt is defined in the Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year in the following categories of government liabilities: currency and deposits, securities other than shares excluding financial derivatives, and national, state, and local government and social security funds.

general assessment: modern telephone system is digital and highly automated; trunk services are carried by fiber-optic cable and digital microwave radio relay; regulator preps for 5G spectrum auction in 2019 (2018)

domestic: competition among mobile-cellular service providers has led to a sharp increase in the use of mobile-cellular phones, 122 per 100, and a decrease in the number of fixed-line connections, 32 per 100 persons (2018)

international: country code - 36; Hungary has fiber-optic cable connections with all neighboring countries; the international switch is in Budapest; satellite earth stations - 2 Intelsat (Atlantic Ocean and Indian Ocean regions), 1 Inmarsat, 1 very small aperture terminal (VSAT) system of ground terminals

Broadcast media:

mixed system of state-supported public service broadcast media and private broadcasters; the 5 publicly owned TV channels and the 2 main privately owned TV stations are the major national broadcasters; a large number of special interest channels; highly developed market for satellite and cable TV services with about two-thirds of viewers utilizing their services; 4 state-supported public-service radio networks; a large number of local stations including commercial, public service, nonprofit, and community radio stations; digital transition completed at the end of 2013; government-linked businesses have greatly consolidated ownership in broadcast and print media

bilateral government, legal, technical and economic working group negotiations continue in 2006 with Slovakia over Hungary's failure to complete its portion of the Gabcikovo-Nagymaros hydroelectric dam project along the Danube; as a member state that forms part of the EU's external border, Hungary has implemented the strict Schengen border rules

Refugees and internally displaced persons:

refugees (country of origin): 5,950 applicants for forms of legal stay other than asylum (Ukraine) (2015) stateless persons: 144 (2018) note: 432,744 estimated refugee and migrant arrivals (January 2015-December 2018); Hungary is predominantly a transit country and hosts 137 migrants and asylum seekers as of the end of June 2018; 1,626 migrant arrivals in 2017

Illicit drugs:

transshipment point for Southwest Asian heroin and cannabis and for South American cocaine destined for Western Europe; limited producer of precursor chemicals, particularly for amphetamine and methamphetamine; efforts to counter money laundering, related to organized crime and drug trafficking are improving but remain vulnerable; significant consumer of ecstasy